STAY LONG WITH THE STOP-LOSS OF 17160

 

STAY LONG WITH THE STOP-LOSS OF 17160

 

WORLD MARKETS

 

US indices gained 0.8%-1.8% as cyclical names tied to the economic recovery made back some of their recent losses.

 

Minnesota public health officials reported the second known U.S. case of omicron. According to the World Health Organization, at least 23 countries from five of six regions have now reported cases of omicron.

 

Initial jobless claims totaled 222,000 for the week ended Nov. 27, lower than economists expected.

 

US 10-year treasury yield rose 4 bps to 1.448%. Spot gold fell 0.7% to $1,768 per ounce. Dollar index inched up 0.1% to 96.13.

 

Brent crude futures rose 1.2%, or 80 cents, to $69.67 per barrel while WTI futures settled 1.4%, or 93 cents, higher at $66.50 per barrel.

 

European markets fell 0.6%-1.8%. Euro zone producer prices surged 5.4% month-on-month in October, for an annual climb of 21.9%. Eurozone jobless rate came in at 7.3% in October, down from 7.4% in September.

 

AT HOME

 

Benchmark indices soared 1.4% each, extending the winning streak to second straight day and scaling one-week high. Sensex settled at 58461, up 776 points while Nifty added 234 points to finish at 17401. Nifty mid-cap and small-cap indices gained 1.1% and 0.6% respectively.

 

All the BSE sectoral indices ended higher, with Utilities and Power indices leading the gains, up 2.1% and 2.1% respectively.

 

FIIs net sold stocks worth Rs 910 cr but net bought index futures and stock futures worth Rs 153 cr and 49 cr respectively. DIIs were net buyers to the tune of Rs 1373 cr.

 

Rupee depreciated 9 paise to end at 74.99/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are down 1.3% and 0.4% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate hurdle for Nifty while 16782, the low made Monday, continued to be immediate support.

 

Nifty soared to touch a high of 17420 before closing at 17401.

 

17650 and 17850 where 20 and 34-DMAs are placed respectively, are the next upside levels to eye.

 

17160 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

37050 is the immediate hurdle for Banknifty; 35328, the low made Monday, continues to be immediate support.